The financial world is changing constantly as it adapts
adjusts and grows together with developments in technology and our ever-changing lifestyles. The banking industry is kept on its toes trying to keep up with the needs of its customers. We have reached the stage where almost everyone is reliant on their computer or smart phone for at least some of their financial transactions and banking. So what comes next? Where is banking heading and what will follow computer and mobile banking?
The Changing Face of Banking as we Know It
It seems like only yesterday when all banking was done by physically visiting a brick-and-mortar bank branch and presenting your bank passbook. Banking progressed to include phone banking and banking actions that could be done at an ATM machine. Online banking was not far behind, giving us more convenience and control over our personal banking. We became less reliant on the banking staff and learnt to track out accounts online and make simple transactions without visiting the bank. Mobile technology then changed the way we thought of banking and many other aspects of life. Today most banking transactions are done on mobile devices and we can do out banking remotely without a second thought. However, like everything else smart phones will eventually be replaced.
What Will Be the Next Big Thing in Banking?
Banking is becoming more and more intuitive and less tactile and many believe that the next big thing in banking will combine digital technology and capabilities including augmented reality, voice tech, enhanced biometrics and other systems powered by the cloud. In the future we could see a device (or even a non-physical system) connect all parts of our lives including banking.
What we Expect from Banking in the Future
We can speculate endlessly on what will be the next big thing in banking and what new tech will come along to change the way we handle our finances but there are a few concepts that we already know will play a part in the future of banking:
- Automation – Our personal data, habits, preferences and statistics are constantly being gathered and having acquired all of these insights into customers, automated financial services will be able to target the customer’s financial goals with very little intervention or effort. This will make banking more economical and efficient. Automated banking starts with gathering customer data, categorization and visualization. Personal Finance Management tools will become essential for capturing financial data and presenting it to consumers for their use.
- Banking as a service
- Devices – There are many devices that could be developed to replace the smartphone, one of the most interesting is the “smart glasses.” These augmented reality glasses are constantly being developed and their virtual reality capabilities increased.
- Non-Banks – It appears that non-banks will play an increasing role in providing financial services. Traditional bank model that can’t keep up with the changes in financial technology will fall behind and be replaced by financial service providers.
- Virtual bank account – Virtual bank accounts are used by companies/EMIs operating as virtual banks, since they may not be licensed as banks in the EU.
- Customer Service – Increasingly people are choosing their bank and financial services according to convenience and ease of use. Customers aren’t expected to understand the technology behind banking systems so in the near future customers will be putting more emphasis on the customized experience, simplicity and ease of use.
- Autonomous Banking – Without a doubt autonomous banking is here to stay and will increase with the customers’ capabilities. This may one-day lead to complete autonomous banking.
- Blockchain Technology – Blockchain is already part of the financial world but its role in our banking systems will most likely increase.
There is no double that the future of banking appears to be faster, easier, more automated, remote, customer-driven and technology based. Customers no longer rely on their banks being all-knowing and instead seek to educate themselves and become more self-reliant where their finances are concerned. For the time being mobile banking is still developing and may be around for the foreseeable future before eventually being replaced as our interaction with devices changes.
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